Discontinuance or settlement
In plain English: Protects members when a derivative lawsuit is ended or settled. Such a proceeding cannot be discontinued or settled without the court's approval, and if the court finds the outcome would substantially affect the interests of the members or a class of members, it will direct that notice be given to those affected members.
10-3635. Discontinuance or settlement
No derivative proceeding may be discontinued or settled without the court's approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the corporation's members or a class of members, the court shall direct that notice be given to the affected members.